Trade Competition Measurement and the Choice of Measurement Indexes

Open access


The aim of this paper is to bring a methodological and empirical contribution to the measurement of trade competition. Globalization and the emergence of new poles in the world economy brought changes to the global landscape and consequent increase in international trade. There is a debate in the literature with regard the indexes that are better fit to be applied in empirical examples for the acquirement of relevant results for measurement of trade competition. This measurement will be achieved by observing the levels of structural similarity in distinct areas and at different moments in time. A higher degree of similarity between the export structures implies a stronger competition in destination markets. The values obtained for this measurement are highly relevant for the trade competition topic. Through this study we further explore the measurement of trade competition and comparatively discuss several indexes used in this area of research.

If the inline PDF is not rendering correctly, you can download the PDF file here.

  • Berthelon M. Freund C. (2008) On the conservation of distance in international trade Journal of International Economics 75(2) 310-320

  • Crespo N. Fontoura M. (2007) Determinant Factors of FDI Spillovers - What Do We Really Know? World Development 35(3) 410-425

  • Crespo N. Simoes N. (2012) Competition in Tourism Arrivals – A Multidimensional Index of Geographical Structural Similarity Tourism Analysis 13-5(1) 4-30

  • Head K. Mayer T. (2013) What separates us? Sources of resistance to globalization Canadian Journal of Economics 46(4) 1196-1231

  • Höhenberger N. Schmiedeberg C. (2008) Structural convergence of European countries CeGE Discussion Paper No. 75

  • Höhenberger N.; Schmiedeberg C. (2008): Structural convergence of European countries CeGE Discussion Paper No. 75

  • Jenkins R. (2008) Measuring the Competitive Threat from China for other Southern Exporters The World Economy 31(10) 1351-1366

  • Krugman P. (1991) Increasing Returns and Economic Geography Journal of Political Economy 99(3) 483-99

  • Lopes J. Lopes A. Sequeira T. (2014) Public Debt Economic Growth and Inflation in African Economies MPRA Paper No. 57377

  • Midelfart-Knarvik et al. (2003) The Spatial Distribution of Economic Activities in the European Union Handbook of Regional and Urban Economics: Cities and Geography Elsevier 4:2845-2909

  • Moreira S. Simoes N. Crespo N. (2017) A contribution to a multidimensional analysis of trade competition The World Economy 40(10) 2301-2326

  • Palan N. (2010) Measurement of Specialization – The Choice of Indices FIW Working Paper N° 62

  • Palan N. Schmiedeberg C. (2010) Structural convergence of European countries Structural Change and Economic Dynamics Elsevier 21(2) 85-100

  • Riad N. Errico L. Henn C. Saborowski C. Saito M. Turunen J. (2012) Changing Patterns of Global Trade Washington D.C.: International Monetary Fund c2011 978-1-61635-207-3

  • Wacziarg R. Horn Welch K. (2008) The world bank economic review Advance Access Publication vol. 22 no. 2 pp. 187–231 PWC (2017) The Long View How will the global economic order change by 2050? The World in 2050

  • World Trade Report (2013) Factors shaping the future of world trade World Trade Organization 13(4) 42-88